FX News

The ECB cut rate a further 25 basis points overnight, citing the conquest of inflation and the need for stimulus over fears of a global tariff war. The US Dollar has been in rapid decline this past week, but the NZD/EUR cross rate has traded between 0.5300 (1.8865) and 0.5390 (1.8550). The German’s have decided to abandon the debt brake’ citing the need for massive deficit spending to break the deep and extended recession.

Current Level: 1.8814
Resistance: 1.9000
Support: 1.8520
Last Weeks Range: 1.8550 – 1.8896

The ECB cut rate a further 25 basis points overnight, citing the conquest of inflation and the need for stimulus over fears of a global tariff war. The US Dollar has been in rapid decline this past week, but the NZD/EUR cross rate has traded between 0.5300 (1.8865) and 0.5390 (1.8550). The German’s have decided to abandon the debt brake’ citing the need for massive deficit spending to break the deep and extended recession.

Current Level: 0.5315
Support: 0.5265
Resistance: 0.5400
Last week’s range: 0.5292- 0.5390

The UK has decided to up the aid to the Ukraine and massively expand defence spending, preparing for war in Europe. The Government deficit and debt have blown out and this is a further excuse to drive the economy into the ditch. The UK are in dire economic straits and the war drums are cover. The NZD/GBP traded in the range of 0.4410 (2.2690) and 0.4455 (2.2450), boosted by the crashing reserve.

Current Level: 2.2461
Resistance: 2.2690
Support: 2.2360
Last Weeks Range: 2.2408- 2.2689

The UK has decided to up the aid to the Ukraine and massively expand defence spending, preparing for war in Europe. The Government deficit and debt have blown out and this is a further excuse to drive the economy into the ditch. The UK are in dire economic straits and the war drums are cover. The NZD/GBP traded in the range of 0.4410 (2.2690) and 0.4455 (2.2450), boosted by the crashing reserve.

Current Level: 0.4452
Resistance: 0.4470
Support: 0.4410
Last Weeks Range: 0.4407- 0.4462

The New Zealand Dollar (NZD) has edged higher over the week against the Australian Dollar (AUD) posting 0.9062 (1.1034) in early morning. The main news of the week has ben the resignation of the Reserve Bank Governor Adrian Orr who has been in the role since March 2018. He has not given a reason for his departure and will stand down at the end of March. The NZD hasn’t really reacted on the news. Aussie GDP for the December quarter came in at 0.6% as expected higher than the 3rd quarter 0.3% driven by high population demand. Year on year GDP has risen 1.3% since December 2024. No economic data next week should push the cross around depending on geopolitical news.

Current Level: 1.1039
Resistance: 1.1080
Support: 1.1020
Last Weeks Range: 1.10 – 1.1106

The New Zealand Dollar (NZD) has edged higher over the week against the Australian Dollar (AUD) posting 0.9062 (1.1034) in early morning. The main news of the week has ben the resignation of the Reserve Bank Governor Adrian Orr who has been in the role since March 2018. He has not given a reason for his departure and will stand down at the end of March. The NZD hasn’t really reacted on the news. Aussie GDP for the December quarter came in at 0.6% as expected higher than the 3rd quarter 0.3% driven by high population demand. Year on year GDP has risen 1.3% since December 2024. No economic data next week should push the cross around depending on geopolitical news.

Current Level: 0.9056
Resistance: 0.9075
Support: 0.9025
Last Weeks Range: 0.9004 – 0.9074

The New Zealand Dollar (NZD) continued its U turn from last week’s 0.5600 number against the US Dollar (USD) Friday extending to 0.5750. Weaker than expected US Job’s data showed a sharp rise in layoffs, more than double the number reported in January climbing to nearly 1.9M continuing the latest slide in US economic data. Meanwhile global risk sentiment has improved breaking the NZD into the 0.57’s. If this continues into next week we could see the cross post a fresh yearly high at 0.5770. US Non-Farm Payroll releases tonight which could also keep the kiwi ‘bid”. Next week’s US CPI is our key data with markets expecting a small drop from 3.0% to 2.9% y/y.

Current Level: 0.5737
Support: 0.5700
Resistance: 0.5770
Last week’s range: 0.5574 – 0.5758